Nifty Future is a derived contract for nifty index security. As volatility is a key factor for trading any stock, traders find nifty future trading a very profitable one when compared with other stocks. Also, as the margin required to buy 1 lot of future is very less when compared to stock futures. This is the reason even small traders find it useful to earn smart profits. The breakeven required to meet is also very less and easy as the volatility of the this kind of future trading is high. Number of points gain/loss is multiplied with 50 to get final profit/loss as the lot size of index future is 50 shares.
Features of Nifty Future trading:
Index Future has high volatility reading.
Amount required to trade in index futures is less compared with nifty equity.
Risk/reward is high in this trading compared to stock future trading.
Volumes are very huge in index derivatives where hardly manipulations are possible.
Trade stability in index trading is more than that in nifty options
Nifty future has very high liquidity in nature which makes buying and selling easy.
profit and losses will be moderate when compared with nifty options
As always, future trading is good for speculators
Arbitrage and hedging are also the applications of this kind of trading
Posted on: 2016-09-03 14:03:15 Updated on: 2016-09-03 14:03:15